Blog

Apr 17, 2024

R&D claim boost for welding and fabrication firm

A West Yorkshire metal welding and fabrication business is set to grow after securing £50,000 through R&D claims managed by Research and Development Specialists Ltd (RDS). Kellys Welding was

A West Yorkshire metal welding and fabrication business is set to grow after securing £50,000 through R&D claims managed by Research and Development Specialists Ltd (RDS).

Kellys Welding was established in 2017 in Wetherby and offers sheet metal materials as well as sheet and laser cutting services.

Director Joe Kelly heard about the HMRC R&D tax incentive scheme when it was brought to his attention by his accountant, who works closely with RDS.

After three successful R&D claims totalling about £50k, Kelly has been able to grow the business, appoint another company director and purchase new machinery. He is also aiming to move to bigger premises.

The HMRC R&D tax incentive is available to any company no matter the size. It rewards those undertaking original research and development with tax credits that can either be deducted from corporation tax or, if a claim is historical, claimed back as a repayment of overpaid corporation tax. The aim of the government scheme aims to stimulate innovation and boost the economy.

RDS has successfully identified more than £45m for clients in eligible R&D spend since 2017. The company recently introduced a customer service hub to streamline internal processes, saving time for those on both ends of overseeing an R&D claim and giving clients 24-hr access to a real time view of the progress of their claim.

Mark Joyner, managing director at RDS, said: "We love working with and helping fellow businesses, especially ones that have been impacted by rising costs.

"It's Kelly Welding's innovation and new product development that makes them eligible to claim under the HMRC scheme and there are so many other companies out there in a similar situation that could be benefitting from cash influxes totalling tens of thousands. The fact that they aren't simply boils down to awareness."

Joe Kelly added: "I have had three successful R&D claims now, totalling around £50,000, which have essentially wiped my corporation tax. Material costs and energy costs are a challenge I think everyone in my industry is facing, the return on our R&D tax relief helps massively with cash flow. My advice would be to trust the experts and go for it."